Question: The Operations Manager provides the following information for its 2 business entities Company A Company B Units Produced 1,250 1,400 Sales Price/Unit $30 $30 Labour

The Operations Manager provides the following
The Operations Manager provides the following information for its 2 business entities Company A Company B Units Produced 1,250 1,400 Sales Price/Unit $30 $30 Labour Hours 2,450 3,000 Labour CostHoun $5.0 $4.5 Materials $3,875 $4,285 Energy Consumption $1,300 $1,550 Capital Consumption (20%) $50,000 $70,000 Others $1,350 $1,600 (a) Using the above information, calculate the total factor productivity index for Company A & B. (b)Assume the benchmark for total productivity index for Company A is 1.25 while for Company B it is 1.35. Comment on the productivity index for Company A & B and suggest ways for improvement (if any)

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